Examples of Tier 2 Capital in a sentence
Regulatory Capital is comprised of Tier 1 Capital plus Tier 2 Capital, net of deductible items and IAS/IFRS prudential filters.
Tier 2 Capital is comprised of the following positive items:• Valuation reserves: financial assets available for sale;• Valuation reserves: actuarial profit (loss) relating to defined benefit pension plans;• Valuation reserves: special revaluation laws.
Regulatory capital will consist of : • Tier 1 Capital (going-concern capital) o CET1 o Additional Tier 1 • Tier 2 Capital (gone-concern capital).
Under Basel III new higher regulatory minimum capital levels are set and applied at three levels as follows:• CET1 must be at least 4.5% of RWA at all times.• Tier 1 Capital must be at least 6.0% of RWA at all times.• Total Capital (Tier 1 Capital plus Tier 2 Capital) must be at least 8.0% of RWA at all times.N.B. Regulatory minima do not include Pillar 2 related add-ons or additional buffers.